No - do not unselect Code Z. The negative amount will be carried over to next year and netted against next year's QBI income in calculating any deduction.
When entering the information from the K-1 in your return,
- On the screen, Check Boxes that Have an Amount, make sure Box 20 is checked and click Continue.
- On the next screen, Enter Box 20 Info, enter the information. Put each code and amount on a separate line. If you have several entries for Code Z, leave the amount box blank. You will be asked for details later in the interview.
- You will eventually come to a screen, We see you have Section 199A Income. Mark the appropriate radio button--usually The income comes from the partnership that generated the K-1. Click Continue
- On the next screen, We need some information about your 199A income, mark the appropriate boxes for the type of income and enter the amount in the box that appears,. Click Continue when done.
@epk
